Unlike GM, Ford, and Stellantis, Hyundai has not been forced to stop production, at least for now. Hyundai and its sister company, Kia, have a stockpile of low-tech semiconductors that keep production going. Past experience with shortages has taught the automakers to take a conservative approach instead of the typical just-in-time approach to inventory. Although Hyundai knew it would shut down its factories when the pandemic hit, it didn't cancel the chip orders. According to Reuters, Hyundai's procurement "read the trend of the semiconductor industry cutting auto chips production and said, ‘if we don’t buy them as well, we’ll be in trouble later on'."
What Does the Chip Shortage Mean for Car Manufacturers?
Something so small has a big impact
As infotainment systems like the Ram Power Wagon's become more complex, more chips are required. (image: Stellantis)
GM has halted production at three factories including one in Fairfax, Kansas. (image: GM)
Hyundai's production lines haven't been impacted thanks to some strategic planning. (image: Hyundai)
Leadership within the auto industry, like GM's CEO Mary Barra, should game plan for the future. (image: GM)